Rathbones hit £60billion mark for funds under management
Liverpool headquartered fund manager Rathbones has grown funds under management to over £60.5 billion and yielded income of £238m it revealed in interim figures this morning.
Pre tax profits dropped however for the six months to 30 June 2023 with £26.0 million (30 June 2022: £32.6 million).
Statutory profit before tax included £11.2 million of costs relating to the merger with Investec W&I, largely professional and legal fees. They now expect the transaction to complete towards the end of the third quarter of 2023.
Paul Stockton, group chief executive said: “After a more positive last half of 2022, the first half of 2023 was a challenging period for investors as markets digested material changes in inflation expectations and interest rates. Rathbones FUMA and net operating income have remained resilient, growing by 2.7% and 2.6%, respectively compared with the same period a year ago.”
On the Investec “combination” he said: “ Integration plans are progressing well, and we expect to complete towards the end of the third quarter of 2023. The transaction presents many exciting opportunities for all stakeholders and places the enlarged Rathbones in a strong position to navigate the current markets and take advantage of future growth opportunities in the sector.”
Rae Maile and Ross Luckman, analysts with investment bank Panmure Gordon, retained their ‘Hold’ call on Rathbone shares following today’s announcement.
They said: “We had been concerned about the possible level of inflows into the wealth industry in the first half of the year but have been pleasantly surprised by performance reported so far.
“Rathbones has proven to be the exception.
“Where yesterday Evelyn Partners reported £1.8bn of net new business for the H1/23 period, and saw an acceleration of flows in Q2, Rathbones has reported a net £nil flow in its investment management business in the period.
“Fortunately, base rate increases support estimates but that does not make an investment case.”
